The negotiations between the Albert Lea school board and the teachers’ union will continue into the summer, as the 403(b) tax-sheltered annuities is still the biggest hurdle in a teaching contract.

After failing to come to an agreement last Thursday and Friday, the two sides met again Monday. A meeting scheduled for Tuesday was canceled, and both groups plan to meet separately to find more ideas to bring the two sides closer to an agreement, said Albert Lea Area Schools Director of Finances Larry Kellogg.

The goal had been to wrap up the contract by the time classes dismiss, which was last week.

The board’s negotiators will discuss the issue at a closed-door meeting with the board next Monday. Negotiators with the Albert Lea Education Association, the teachers’ union, will discuss the issue with teachers.

“It’s give and take, give and take. And we’ve both reached the point where we feel like we can’t give anymore,” said Bill Villarreal, lead negotiator for the school board.

“That’s really catch-22,” he added, “because we’re really close; yet, there are some issues.”

Those issues could push the negotiations on through the summer, and ALEA President Jim Munyer said it’s unlikely a tentative agreement will be reached in June. He said the groups will not meet again for a few weeks because some people involved will be out of town next week.

Kellogg said both sides are trying to reach an agreement soon, so that nine positions recently cut or reduced can be restored. However, it’s possible a few of those positions could remain as cuts under the new contract, and Kellogg said it’s possible the teachers affected could find new jobs before the contract is completed.

Kellogg estimated the two sides are about $150,000 apart on the 403(b) pension.

“That’s the roadblock, I would say, at this point,” Kellogg said.

Kellogg said the two sides are close on other issues remaining in the contract.

One other issue the two sides are working to resolve is the health insurance plan. The board is looking to do away with retiree health insurance for new employees.

Currently, the Albert Lea School District contributes 92.5 percent of the premium for a single policy until Medicare age, which is 65. The teachers are requesting a health savings fund be set up in return.

Munyer said the insurance will not be a big issue.

“It’s a little bit here, a little bit there. That’s why they call it collective bargaining,” Munyer said.

The Munyer said the teachers have given a lot in the wording of the contract. For example, the word “maximum” will be removed from the contract. This means the amount the district will match on the 403(b) plan will be determined by a percentage, rather than equaling the maximum contribution allowed for state employees.

Language put in the contract about 15 years ago was a key reason for the increase in the 403(b) pension.

Kellogg said the intent was for the maximum amount matched to rise gradually, but it stayed at $2,000 until the Legislature last spring passed a bill that raised this maximum amount to $8,250 for teachers with 18 years experience or more in the district. State legislators thought they were benefiting state employees and hadn’t realized the impact the language would have on schools.

This took effect in the middle of a two-year contract and was not planned in the school budget.

An arbitrator upheld the increase in February. Out of 67 teachers in the district with 18 years of service or more, Kellogg said 48 were already contributing more than $2,000 to the 403(b) pension or decided to add to their contributions after the increase. So the district is matching additions up to $8,250, which has resulted in $177,000 being paid in monthly increments between Jan. 1 and June 30 of 2009, Kellogg said.

Munyer said the teachers have given on some language issues, and both sides are waiting to see what the other side will do next.

Kellogg said there is an added sense of urgency in the negotiations because jobs are at stake, but Villarreal said both sides still have a good relationship and mutual respect.

“Depending on what side of the table you’re sitting on, we both have our own issues with what we think is fair. It’s difficult, no doubt. It’s probably the most difficult one I’ve been through,” Villarreal said.